Steel prices fell two yuan 200 yuan / ton, contradiction between supply and demand

Futures Daily reporters learned that steel prices fell wildly last weekend, with a one-day drop of 100 yuan/ton on Saturday, with some steel products falling by nearly 200 yuan/ton, and Tangshan billet price of 3800 yuan/ton on the 9th day.

Li Ying, an analyst, believes that the reason for the crazy price decline in this round is that the real impact of the production restriction policy has slowed down, the off-season effect dominates the driving force, the contradiction between supply and demand has become prominent, and the price has declined smoothly. Two is the market mentality pessimism intensifies, steel factory traders empty empty list, few without disk. Third, the current price gap is large, the fundamentals are difficult to support the futures upstream, the pressure of repairing the base difference is large, and the spot decline is repaired in the short term.

Futures Daily reporter found that for this round of decline, panic among some market operators intensified. Industry insiders believed that with the fall of prices, the demand for empty warehouse replenishment and the consolidation of the basis after short-term repairs, there was no possibility of a sharp decline in prices. This morning, a 20 yuan/ton increase in billets also boosted the short-term market.

It is worth noting that steel mills in some areas continue to adjust the ex factory price of rebar. On Nov. 12, Nangang adjusted the price policy of building materials in Nanjing as follows: screw thread was lowered by 50 yuan/ton, and now the executed price of 16-25mm HRB400 screw steel is 4590 yuan/ton.

Nov. 12, Shanxi Gaoyi High-speed Line factory listing price dropped 130 yuan, Q235 material 8-10mm high-speed line factory price is 4140 yuan/ton, 6.5 price increase 100, HPB300 material 8-10mm high-speed line factory price is 4170 yuan/ton; Q195 material 6.5mm high-speed line factory price is 4230 yuan/ton; Q195 material 6.5mm high-speed line factory price is 4230 yuan/ton

"But in the medium term, without further policy adjustment on the supply side, the off-season effect of demand is further highlighted, and steel prices are expected to remain downward space." Li Ying said. (source: futures daily)